Prepare a relevant cost analysis that shows whether the Company M Division should make MTR-2000 orpurchase it from Company M for 2019. (a) Compute the relevant cost per unit to makeand the relevant cost per unit to buy externally. (b) Compute the total difference in relevant costs between the two alternatives; assume that the volume of units is 30,000.

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Answer 1

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Chapter 11, Problem 37P

1.

To determine

Prepare a relevant cost analysis that shows whether the Company M Division should make MTR-2000 orpurchase it from Company M for 2019. (a) Compute the relevant cost per unit to makeand the relevant cost per unit to buy externally. (b) Compute the total difference in relevant costs between the two alternatives; assume that the volume of units is 30,000.

2.

To determine

Identify and briefly discuss the strategic factors that Division M should consider in the given decision.

3.

To determine

Refer to the specific ethical standards for management accountants outlined in Chapter 1,and assess the ethical issues in John Porter’s request of L H.

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Answer 2

Question

Chapter 11, Problem 37P

1.

To determine

Prepare a relevant cost analysis that shows whether the Company M Division should make MTR-2000 orpurchase it from Company M for 2019. (a) Compute the relevant cost per unit to makeand the relevant cost per unit to buy externally. (b) Compute the total difference in relevant costs between the two alternatives; assume that the volume of units is 30,000.

2.

To determine

Identify and briefly discuss the strategic factors that Division M should consider in the given decision.

3.

To determine

Refer to the specific ethical standards for management accountants outlined in Chapter 1,and assess the ethical issues in John Porter’s request of L H.

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Answer 3

Question

Chapter 11, Problem 37P

1.

To determine

Prepare a relevant cost analysis that shows whether the Company M Division should make MTR-2000 orpurchase it from Company M for 2019. (a) Compute the relevant cost per unit to makeand the relevant cost per unit to buy externally. (b) Compute the total difference in relevant costs between the two alternatives; assume that the volume of units is 30,000.

2.

To determine

Identify and briefly discuss the strategic factors that Division M should consider in the given decision.

3.

To determine

Refer to the specific ethical standards for management accountants outlined in Chapter 1,and assess the ethical issues in John Porter’s request of L H.

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 37P

1.

To determine

Prepare a relevant cost analysis that shows whether the Company M Division should make MTR-2000 orpurchase it from Company M for 2019. (a) Compute the relevant cost per unit to makeand the relevant cost per unit to buy externally. (b) Compute the total difference in relevant costs between the two alternatives; assume that the volume of units is 30,000.

2.

To determine

Identify and briefly discuss the strategic factors that Division M should consider in the given decision.

3.

To determine

Refer to the specific ethical standards for management accountants outlined in Chapter 1,and assess the ethical issues in John Porter’s request of L H.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 37P

1.

To determine

Prepare a relevant cost analysis that shows whether the Company M Division should make MTR-2000 orpurchase it from Company M for 2019. (a) Compute the relevant cost per unit to makeand the relevant cost per unit to buy externally. (b) Compute the total difference in relevant costs between the two alternatives; assume that the volume of units is 30,000.

2.

To determine

Identify and briefly discuss the strategic factors that Division M should consider in the given decision.

3.

To determine

Refer to the specific ethical standards for management accountants outlined in Chapter 1,and assess the ethical issues in John Porter’s request of L H.

Answer 6

Chapter 11, Problem 37P

1.

To determine

Prepare a relevant cost analysis that shows whether the Company M Division should make MTR-2000 orpurchase it from Company M for 2019. (a) Compute the relevant cost per unit to makeand the relevant cost per unit to buy externally. (b) Compute the total difference in relevant costs between the two alternatives; assume that the volume of units is 30,000.

Answer 7

Chapter 11, Problem 37P

1.

To determine

Prepare a relevant cost analysis that shows whether the Company M Division should make MTR-2000 orpurchase it from Company M for 2019. (a) Compute the relevant cost per unit to makeand the relevant cost per unit to buy externally. (b) Compute the total difference in relevant costs between the two alternatives; assume that the volume of units is 30,000.

Answer 8

2.

To determine

Identify and briefly discuss the strategic factors that Division M should consider in the given decision.

Answer 9

2.

To determine

Identify and briefly discuss the strategic factors that Division M should consider in the given decision.

Answer 10

3.

To determine

Refer to the specific ethical standards for management accountants outlined in Chapter 1,and assess the ethical issues in John Porter’s request of L H.

Answer 11

3.

To determine

Refer to the specific ethical standards for management accountants outlined in Chapter 1,and assess the ethical issues in John Porter’s request of L H.

Answer 12

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Ch. 11 - Prob. 1Q Ch. 11 - List at least four different decisions for which...Ch. 11 - What is the relevant cost when determining whether...Ch. 11 - List four to six strategic factors that are often...Ch. 11 - How do short-term evaluations affect a manager’s...Ch. 11 - List four or five important limitations of...Ch. 11 - How do strategic factors affect the proper use of...Ch. 11 - List some of the behavioral, implementation, and...Ch. 11 - How does the presence of one production constraint...Ch. 11 - What is the relationship, if any, between the...

Identify and briefly discuss the strategic factors that Division M should consider in the given decision.

Refer to the specific ethical standards for management accountants outlined in Chapter 1,and assess the ethical issues in John Porter’s request of L H.

Chapter 11 Solutions